Today, publishing premium video content is easier than ever. Services like Brightcove, Ooyala or Vimeo offer convenient possibilities to add videos to platforms and websites. The big “M”-question, however, remains: How do I monetize my expensively produced content? With LaterPay, the payment solution that is easy and quick to integrate, premium video content is freed from the constraints of compulsory advertising.

The times of a global “everything for free” mentality on the internet are now in the past. Display ads like banners and teasers, pre-roll ads and more direct ad inserts within the running video are accepted as necessary evils. What remains is a strong dependency on the metrics of the advertising networks.

This dilemma is particularly obvious within the YouTube world. The rules are: a catchy headline, a blaring intro, followed by user-enticing video banter to get even the last ad played out. If you want to monetize successfully on YouTube et al., you have to focus on mass distribution and long runtimes. What might work for half-hour makeup tutorials and “Let’s play…” video game walkthroughs, in fact cuts off premium special interest video from its required ad revenue. The consequence: video content is being produced according to the rules of marketing, and the demands of the respective target groups fall by the wayside.

Declining revenue with pre-rolls and the like

Alternatives to pre-roll ads and other ad displays have been scarce for a long time. Notwithstanding, even these revenues have recently taken a nosedive. One obvious reason for this is the sheer mass of videos published on the big platforms that offer proprietary monetization models. On top of that, top dog YouTube introduced an adjustment of their algorithm, which now rewards longer videos. For expensively made, but shorter videos this resulted in a substantial loss in value. No wonder that even some much-hyped YouTubers who could once live splendidly on ad revenues are now dependent on user donations – for example, via the crowd funding platform Patreon.

Successful subscription models are rare as well, if you exclude the big streaming services Netflix, Amazon Prime and YouTube Red, whose top-notch-production shows and blockbusters are not accessible for most publishers. And what if the user’s interests are more specific? Noticeably often, particular videos on YouTube channels achieve a comparably higher number of views – precisely because they are set apart from the general catalogue by satisfying a specific interest. Thus, the mixed calculation required by subscription models rarely is the silver bullet.

Use now, pay later – Paid videos according to the LaterPay principle

As an alternative to common video content monetization models, LaterPay offers the following: complete freedom for any video format. A ten-second firework or a two-hour, high-quality documentary – the “use now, pay later” principle allows for direct monetization with easy integration of the payment system. Thanks to the one-click system, videos stream instantly, without the user having to provide payment details. This way high-quality video content is monetized directly where websites or platforms attract interested visitors. Publishers who directly integrate their video content to escape the flood of content pouring out of YouTube and other platforms have found an ideal, user-friendly way to convert their interest groups into paid users. Between free content and annoying ads, a real alternative for monetizing video content has opened up.

Payment funnel model turns first-time users into subscribers

Incidentally, it is not even necessary to host the video content on your own servers. Providers like Brightcove and Vimeo offer the service of distributing individual videos across different platforms. Or you may even provide a download option which is also monetized via the LaterPay cross-platform payment system. Another advantage of LaterPay over ad-based monetization is the payment funnel concept. The user becomes aware of individual paid content, and following the principle of “watch now, pay later”, becomes a customer. Returning customers are easily introduced to video time-passes that end automatically. Finally, satisfied customers will pick the convenient automatic renewal option and turn into paid-for video subscribers. It is obvious that users recognize the value of high-quality video content and will prefer this new standard of video monetization to pre-rolls and other previous approaches.